Apple responds: we want a cut of Amazon, Sony e-book sales

Apple has responded to speculation that its App Store policies could bar …

Apple has responded to the furor over its supposed App Store policy changes that many believe could affect the popular Kindle, Nook, and Sony Reader apps. The company claims it has not changed any of its guidelines given to developers, but it indirectly confirms that accessing content purchased elsewhere could be a no-no if that content isn't also available to be purchased through Apple's own system.

"We have not changed our developer terms or guidelines," Apple spokesperson Trudy Muller told Ars. "We are now requiring that if an app offers customers the ability to purchase books outside of the app, that the same option is also available to customers from within the app with in-app purchase."

Buzz began Tuesday morning when the New York Times said that Sony's e-reader app had been rejected, citing Apple's restriction on in-app book purchases. This in itself was not a new policy—Apple doesn't allow apps to sell content to users unless that content passes through the official Apple ecosystem, where Apple gets a 30 percent cut.

Apple also allegedly told Sony that the app couldn't access content purchased on other Sony Reader devices, which is where most of the outrage was focused. Amazon's Kindle app and Barnes & Noble's Nook app are both popular mechanisms for users to download and read books that they have purchased from the respective stores. Many feared that this supposed change in Apple policy would take their e-books away from their iPads, iPhones, and iPod touches.

Apple's second statement indicates that this is indeed the case—sort of. If an app lets users access content that they purchased via Amazon's website, for example, then that same app must also let users buy the same book via Apple's own in-app purchase system. If the app developer doesn't want to use Apple's in-app purchases to sell content, then the app can't access content purchased elsewhere either.

This is notable because it will require Amazon and Barnes & Noble (as well as Sony, whose iOS app is not yet available) to change how their offerings work. Apple wants its 30 percent share of content sales whenever possible.

Amazon has already gone all-in with its "Buy Once, Read Everywhere" tagline, so it probably can't afford to back out of the iOS platform now. The alternative appears to be an user interface nightmare: re-structuring its sales mechanisms in order to allow customers to buy from both Amazon and Apple (a move that will chafe Amazon execs) or from Apple alone (even more chafing).

Sony, for its part, still has not responded to our requests for comment. The company did post a note on its website, however, noting that it has "opened a dialog with Apple to see if we can come up with an equitable resolution but reached an impasse at this time." The company says it's exploring other ways to bring its Reader to iOS devices, indicating that it may try other routes in order to avoid the App Store tax.

Yup. I was defending what I thought was a straightforward enforcement of existing policies in the other thread (by which I thought that Sony's eReader app was in violation, while the Nook and Kindle apps were fine). This clarification by Apple, though, has definitely laid the strategy bare. And it is, as Aurich says, a dick move.

It's not just eBooks either; the company I work for is in the online video space and we had a player app rejected last week because you could watch content purchased on our web site rather than purchased through Apple's platform with its mandatory 30% price-gouge.

This could push me over to not getting the new Verizon iPhone. There are a number of things that I seriously enjoy with Apple devices, however this is a bit much for me to swallow (just pushes the wrong buttons). I'll wait and see on this for a bit to see how this develops

I had already switched to Android because of Apple's iStore shenanigans. I absolutely love my iPad and the Kindle app is possibly my most used app... but if they are really intent on fucking that up, I'll happily switch to a different tablet now that some real competitors have arrived.

Remind me again why I never bought an Apple product? Oh, that's right: this, among other things.But I am sure the Apple fan boys will soon come by to give me my free entertainment by licking their Master's boots and justifying this deranged behavior somehow.

What Amazon should do is charge 30% more for books purchased through the kindle app (to compensate for Apples gouging), and make it *very clear to users* that the same content can be purchased for less outside the app.

Is Apple going to allow purchases of Amazon mp3 songs from the iphone? I like the deals on Amazon better than itunes. Wouldn't that be fair if Apple is demanding that users be allowed to purchase kindle books from itunes?

Wow. I really hope there's an error in communication here somewhere. I love my kindle and am mostly pleased with my iPhone, but I cannot tell you how fast I would move to another phone OS if this is true.

I buy almost everything from Amazon, and purchasing books from their website is easy. If Apple wants to screw with that I am gone.

Remind me again why I never bought an Apple product? Oh, that's right: this, among other things.But I am sure the Apple fan boys will soon come by to give me my free entertainment by licking their Master's boots and justifying this deranged behavior somehow.

I have used and enjoyed apple products for many years, however this move is crass and indefensible. Maybe you'd like to examine your own prejudices against other people?

This could push me over to not getting the new Verizon iPhone. There are a number of things that I seriously enjoy with Apple devices, however this is a bit much for me to swallow (just pushes the wrong buttons). I'll wait and see on this for a bit to see how this develops

While this is a bit more obvious, it is in every way consistent with Apple's philosophy and approach with the iOS devices and app stores. Thus the reason I have not, and never will, purchase said devices.

What Amazon should do is charge 30% more for books purchased through the kindle app (to compensate for Apples gouging), and make it *very clear to users* that the same content can be purchased for less outside the app.

I'd been holding off on buying an iPad. Primarily to see what other things might be offered the first part of this year.

However, the iPad is now out of the running. While I understand Apple's desire to make sure users have a uniform experience, while maximizing Apple's profits, I'm not thrilled by them pulling a stunt like this this late in the game.

I'm pretty OS agnostic and happily enjoy using the iPod Touch and MacMini. While I was leaning toward becoming primarily an Apple household, I think I'll stick with the approach of keeping a mix of things.

Seriously though, Apple adds very little value to the produce for a 30% cut. Pretty much any company would kill for those margins (even when you subtract costs I'd imagine it's a healthy 15+% margin). It's genius really, if you can get away with it.

Why not just add 30% to the purchase price when buying off of iOS devices. They can make it clear that this 30% is the price Apple charges for them to buy books on their platform. If the customer wants to save the 30% they can do it from a Kindle or a browser on a PC.

Let's see how much that marketplace is worth when consumers are confronted with the extortion-level costs of running it that Apple claims are necessary.

All while getting up on their high horse about the wonders of HTML5 and the evils of Flash. Standards and openness are great, as long as they can be used to ruin someone else's business model.

Lemurs wrote:

Why not just add 30% to the purchase price when buying off of iOS devices. They can make it clear that this 30% is the price Apple charges for them to buy books on their platform. If the customer wants to save the 30% they can do it from a Kindle or a browser on a PC.

Let's see how much that marketplace is worth when consumers are confronted with the extortion-level costs of running it that Apple claims are necessary.

This. Of course I'm sure Apple would just reject the app in that case because... well because.

As expected from Apple. It's no wonder they are embedding the App Store into their OS. It probably won't be long till they lock that down and make it the only portal to buying stuff for Mac computers.

I agree with some posts here Amazon and all other digital content owners should just drop the iOS platform in protest. Apple definitely needs them more than they need Apple now. If these content companies just announce that they will drop iOS support, Apple will change their tune.